Germany’s leading DAX index is expected to begin the week with gains. IG Markets indicated a pre-opening rise of around 0.2%, putting the index at approximately 25,865 points.

The DAX closed 0.9% lower on Friday at 25,818 points, weighed down by disappointing results from Amazon and Intel. Despite the decline, the index gained 2.5% over the week and ended October with the same monthly increase.

Investors are now turning their attention to Tuesday’s US midterm elections. Robert Greil, chief strategist at Merck Finck, said the election outcome and Donald Trump’s response would be decisive for financial markets. Concerns about a possible Republican loss of control in the House of Representatives are adding to uncertainty over the administration’s next steps.

Market effects could be particularly visible in commodity prices. US crude oil gained about 14% in October, and a potential attack on Iran could push prices higher still. More expensive oil would increase inflationary pressure and raise production costs for industry, weighing on the global economy.

The earnings season is also expected to provide further market impulses. Recent results from several US technology companies disappointed investors and contributed to a sell-off in technology stocks, while questions remain over whether heavy investment in artificial-intelligence infrastructure will eventually generate sufficient returns.

Apple is scheduled to publish its results after the US market closes. Strong figures could temporarily ease those concerns. In Germany, Bayer and Lufthansa are due to report third-quarter results on Tuesday, followed later in the week by BMW, Deutsche Telekom, Commerzbank and logistics group DHL.

Asian markets provided a positive backdrop. Tokyo’s Nikkei rose 0.4% to 63,559 points, while Shanghai’s benchmark gained 1.2% to 3,640 points. The index covering major companies in Shanghai and Shenzhen advanced 1.3% to 4,035 points.

Chinese shares were supported by speculation about government measures to support the market. According to media reports, regulators discussed new capital-market instruments with financial institutions after a sharp decline in the benchmark index during October.

Sources: Tagesschau.